Houston has announced the departure of athletic director Chris Pezman, a former Cougars football player who held the position for over six years. Raymond Bartlett, Houston’s senior vice president for administration and finance, will step in as the interim athletic director while the search for Pezman’s replacement begins immediately.
University president Renu Khator attributed the change in athletic leadership to “a paradigm shift” in college athletics. Khator expressed gratitude for Pezman’s leadership during a time of significant transformation in the athletics program, including the transition to the Big 12 Conference and the support of student athletes both on and off the field. She emphasized the necessity of this decision given the evolving landscape of collegiate athletics and thanked Pezman for his dedication.
Major changes might be on the horizon for the Big 12 conference. In mid-June, there were reports about two potential developments for the league: a possible naming rights deal and a prospective arrangement involving a private equity firm. These two moves are not the same in terms of their potential impacts.
The idea of the Big 12 potentially being renamed the “Allstate 12” or something similar sparked jokes and online reactions. On the other hand, it is the involvement of a private equity firm that could have lasting negative consequences for the league and its member schools, as argued by On3’s Andy Staples and Pete Nakos.
The concern arises from the fundamental differences in how these two deals would function. While a naming rights deal may invite ridicule, it essentially involves rebranding the league for a cash injection without affecting operations significantly, except for more funds to distribute to schools. In contrast, a private equity deal would mean the firm investing a substantial upfront amount — presumably to fill revenue gaps compared to the Big Ten and SEC — and gaining partial control over the league and member schools. They would be repaid with interest over a period of years, likely decades. The former might be acceptable for college athletics, but the latter could be highly problematic.
According to Nakos, the involvement of private equity could lead to the firm exerting significant influence and potentially demanding cuts to sports programs. Staples further elaborated that opening the door to a private equity firm could put athletic departments in a precarious position, as the firm might prioritize sports that generate profits and push for cuts in non-revenue sports, potentially disregarding Title IX regulations.
The specific details of a potential Big 12 private equity deal are still unknown, and the terms reported are not final. However, the outlines of the deal suggest a payout of around 800𝑚𝑖𝑙𝑙𝑖𝑜𝑛𝑡𝑜1 billion to the Big 12 schools from a firm in Luxembourg in exchange for approximately a 20% stake in the league, along with repayment with interest.
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